With Bangladesh facing higher inflation for a long time, the International Monetary Fund (IMF) has advised keeping the policy interest rate on the rise until inflation decreases.
Bangladesh Bank Spokesperson and Executive Director Huseara Shikha hinted this while talking to reporters at her office on Tuesday.
She said this ahead of a delegation led by IMF mission Chief Chris Papadakis, scheduled to visit Bangladesh from December 3 to 17 to review the IMF conditions.
The IMF says that inflation in Bangladesh is currently above 11 percent. It will remain around 10 percent throughout 2025, and after that, the international donor agency believes it may come down to 6 to 7 percent.
The fourth tranche of the US $4.7 billion loan program depends on fulfilling the conditions given by the global lender.
Read: BB Governor projects inflation reduction in 8 months
The IMF imposed conditions on Bangladesh for providing this loan.
Although almost all the conditions given by the lender are on track to be met, it is well behind the revenue collection target. However, the installment has already been released after showing progress in fulfilling most of the conditions.
Earlier, in January 2023, the IMF approved a $4.7 billion loan for Bangladesh. It was supposed to provide this loan to Bangladesh subject to conditions.
The IMF delegation is reviewing each installment of this loan, which was given in seven installments, before releasing it.